The ultralow inflation becoming entrenched in Europe is playing out in strikingly different ways across the eurozone’s 18 economies, complicating attempts to combat it.

In crisis-hit countries such as Greece and Spain, the detrimental effects of falling prices, known as deflation, are showing up clearly in strained profits and lower wages as companies try to adjust. But in healthier economies such as Germany and Austria, where unemployment is low and incomes are up, the most obvious impact is a boost to consumers’ purchasing...